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11 <br />appropriate, shill be added to the principal and interest payable on the Bonds to determine compliance with this rate <br />covenant. <br />Flow of Funds for the Bonds <br />Under the Resolution, the County has covenanted that all Revenues shall upon receipt thereof be deposited in the 'Water <br />and Sewer Revenue Fund' (the 'Revenue Fund'). The Revenues are subject to the prior pledge and lien granted with respect <br />to the Senior Lien Bonds under the Senior Lien Bond Resolution. The Senior Lien Bonds consist of aggregate indebtedness <br />of $9,650,000. The County has covenanted not to issue any bonds or obligations senior to or having priority over the Bonds <br />other than the Senior Lien Bonds. <br />Subject to the prior pledge and lien granted with respect to the Senior Lien Bonds and the flow of funds with respect <br />thereto (Sae 'SECURITY AND SOURCES OF PAYMENT - Flow of Funds under Senior Lien Bond Resolution'), all <br />Revenues on deposit in the Revenue Fund for the Bonds shall be disposed of by the County subject to the following order <br />of priority: <br />(1) First, the County shall transfer in each month to the Operatiaa and Maintenance Fund the amount required to <br />be deposited therein to pay the Operating Expenses due or to become due for such month, provided, however, that credit <br />shall be given for funding of such month's Operating Expenses under the Senior Lien Bond Resolution. <br />(2) Second, the County shall deposit in each month to a fund to be known as the "Water and Sewer Revenue Bonds <br />Sinking Fund" (the 'Sinking Fund"), one-sixth (1/6th) of such sum as will be sufficient to pay interest on the Bonds u <br />the same shall become due on the next interest payment date, together with the amount of any deficiency in prior <br />deposits for interest on Bonds, and one -twelfth (1/121b) of the principal of Bonds maturing or subject to mandatory call <br />for redemption on the next principal payment date with respect to the Bonds. Such deposits shall take into account the <br />sums, if any, in the Rood Amottiration Account (hereinafter defined) attributable to such payments and the sums, if any, <br />deposited in the Sinking Fund out of proceeds from the sale of Bonds to pay interest thereon. In addition, there shall <br />be deposited in the Sinking Fund amounts sufficient to pay the fees and charges of the Paying Agent. <br />(3) Third, the County shall deposit into an account in the Sinking Fund to be known as the 'Bond Amortization <br />Account,' such sums u are required by resolution of the County to be deposited therein at such times u are required <br />thereby for each series of Term Bonds for purposes of the minatory redemption thereof. <br />(4) Fourth, the County shall deposit into an account in the Sinking Fund to be known as the 'Reserve Account," <br />a sum at least equal to and sufficient to pay the maximum amount of principal and interest on all outstanding Bonds <br />becoming due in any ensuing Fiscal Year. A sum to be specified by subsequent resolution of the County will be <br />deposited in the Reserve Account out of the proceeds of the sale of Series 1991 Bonds. To the extent the amount <br />deposited in the Reserve Account is less than the maximum amount of principal and interest on all outstanding Bonds <br />becoming due in any ensuing Fiscal Year, the County will make such additional required payments or substitutions <br />therefor u described herein. <br />However, in no Fiscal Year shall Net Revenues in excess of twenty percent (20%) of the maximum amount of <br />principal and interest on all outstanding Bonds becoming due in any ensuing Fiscal Year be required to be deposited in the <br />Reserve Account, except as may be required by Subsection P or Subsection Z of Section 16 of Resolution No. 89-19. No <br />further deposits shall be required to be made into the Reserve Account as long as there shall remain on deposit therein <br />(including any Reserve Account Credit Instrument as described below) a sum equal to the maximum amount of principal and <br />interest on all outstanding Bonds becoming due in any ensuing Fiscal Year. The value of the Reserve Account, including <br />investments on deposit in the Reserve Account, shall be determined annually on the first day of the Fiscal Year by an <br />independent firm of certified public accountants, who may be the accountants for the County, in accordance with generally <br />accepted accounting principles. <br />Notwithstanding the foregoing, in lieu of, in whole or in part, the required deposits into the Reserve Account, the <br />County may cause to be deposited into the Reserve Account any of the following (each a "Reserve Account Credit <br />Instrument"): <br />6 <br />